Everyone’s obsessed with chasing SCHD for dividend income… but what if I told you there’s one ETF quietly outperforming it in total returns while still growing dividends every single year? And when you see the numbers, you’ll understand why this could be the only ETF you’ll ever need for lifetime dividend growth.
Look, SCHD isn’t bad. It’s solid. But my friend Harry did something most investors don’t—he compared every major dividend ETF head to head. The winner? Not the highest-yielding fund, not a dividend aristocrat ETF, not even what most people think of for dividends.
It was a fund almost nobody considers for dividend growth… yet it has grown its dividend for 14 consecutive years while delivering returns that make traditional dividend ETFs look like a savings account.
Quick disclaimer: This is educational content, not personal financial advice. All investments carry risk. Always consult a professional for your situation.
The Harsh Truth About Dividend Investing 😬
Here’s what nobody tells you: chasing the highest yield can actually cost you money.
Everyone searches for 5%, 6%, even 8–10% yields. Sounds amazing… until reality hits. High yield often signals risk, not opportunity.
Yield = dividend ÷ share price. When a stock crashes 40% but keeps the same dividend, that yield looks amazing… but it’s unsustainable. That’s exactly what happened to Harry at first.
He had $50,000 to invest for retirement, Googled “best dividend ETFs,” and bought the highest yielders he could find. Six months later, disaster struck:
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One fund cut its dividend by 30%
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Another suspended it completely
Harry’s passive income plan was crumbling. That’s when he did something smart: he shifted focus from yield to dividend growth.
Why Dividend Growth Wins 🏆
Companies that consistently grow dividends are signaling confidence. They’re saying:
“We’re so certain about our future that we’ll pay you more every year.”
Harry developed 3 rules for the perfect dividend growth ETF:
1️⃣ At least 10 years of consecutive dividend increases
2️⃣ Ultra-low expense ratio
3️⃣ Total return beats inflation
After weeks of research, he compared every major dividend ETF. SCHD looked good… but total returns were just okay. Then he looked at something unexpected:
The Vanguard S&P 500 ETF (VO)
At first glance, VO seems wrong for dividends. Yield? Just 1.15%. Compared to SCHD’s 3%, that’s tiny.
But here’s the kicker:
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14 years of consistent dividend growth
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10-year dividend growth rate: 6.17%
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5-year rate: 5.64%
Now watch the magic of compound growth:
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$10,000 invested today → $115 in dividends year 1
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By year 10 → $200
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By year 20 → $340
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By year 30 → nearly $600 annually
Meanwhile, a flat 3% yield stays stuck at $300 forever.
VO’s Real-World Performance 🚀
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5-year total return: 114.89%
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10-year total return: 320.43% (money more than quadrupled!)
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Expense ratio: 0.03% ($3/year on $10,000)
What’s inside VO? 507 top U.S. companies like:
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Nvidia 7.76%
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Microsoft 6.88%
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Apple 6.33%
These aren’t traditional dividend machines—they’re growth giants that pay dividends. VO isn’t a dividend ETF—it’s an all-American powerhouse, and the dividends are just a bonus that keeps growing.
Why Harry Went All-In 🔥
Instead of splitting investments between high-yield and growth ETFs (diluting benefits and paying double fees), Harry put 70% of his portfolio in VO. The result?
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Portfolio up 73%
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Dividend income up 40%
VO grows dividends automatically, removes losers, adds winners, and keeps you invested in America’s best companies—all with 0.03% fees.
The Takeaway 💡
Forget chasing the next high yield. Focus on long-term growth, dividend increases, and total returns. VO gives you all three:
✅ Rock-bottom fees
✅ 14 years of consecutive dividend payments
✅ Average 6% annual dividend growth
✅ Diversified exposure to 507 American companies
Harry’s biggest regret? Not discovering VO 10 years earlier. But now, he’s set for the next 20+ years.
Start with just one share (~$600 today) and let American business do what it does best: grow relentlessly decade after decade.
💸 Ready to start investing in VO and let your dividends grow? Click here to get started with Moomoo and start building your future today! 👉 Invest in VO on Moomoo
#InvestSmart #DividendGrowth #VOETF #LongTermWealth #MoomooInvesting #FinancialFreedom #InvestingMadeEasy
